Biostem presented at the Centri Capital Conference yesterday. There were some encouraging details on their potential Nasdaq uplisting,
- “Hopefully we’re near term to getting a Nasdaq listing here pretty soon”
- Multiple Form 10 Edits, looking to have the Form 10 go effective near term
- “Our Nasdaq application is already approved. We’re just waiting on the Form 10 to go effective”
- One comment left to clear on revenue recognition, looking to get pushed through in coming weeks
There was a comment on valuation of the company from the CEO as well, “Huge delta between our commercial efforts and our success financially versus our market cap”
Some additional details from the conference include,
- Perinatal tissue used to treat diabetic foot ulcers, pressure ulcers, advanced leg ulcers
- CGTP (Current Good Tissue Practice) and AATB accredited with 6k square foot facility
- BioRetain proprietary processing methodology, keeps natural elements of perinatal tissue
- Properties of BioRetain, maintains anti-inflammatory cytokines, growth factors of PDGF Beta and VEGF, and produces long strands of collagen
- Competitor products have broken collagen strands
- Gives analogy of Wonder Bread versus whole grain bread, their product is whole grain with nutrition, competitors extract/clean too much to get Wonder Bread
- Three patents around placental tissue, two for BioRetain, one around processing method OxoCel
- 60+ patents in total
- Human cellular products serve as a barrier or wound covering naturally
- Good tissue products can be commercialized easier than FDA drugs
- Vendaje Optic, reduces inflammation in optical space
- Majority of commercialization is in the physician office segment
- No GPO or hospital agreements yet, working on this
- partnership with Venture focused on long term care, nursing and mobile wound care environments
- Collecting, c-section has to be planned, mother needs rigorous social and medical history
- Won’t take tissue if mother had tattoo in last 1.5 years, or vacation in Zika related country
- Recovery of tissue delivered in 24-48 hours, start BioRetain process at facility, product has 4 year shelf life
- Expanding facilites in 2025
- Venture OneView compelling product for commercialization
- Venture provides “bona fide services”, and commercializes for end shipment to users
- Clinical studies prove effectiveness of BioRetain, also starts dialogue with commercial payers on how to use the product for acute settings
- Paper against leading competitor, reduced number of applications of products and treatment days less than competitor
- TAM question, very large market for diabetes and Medicare beneficiaries, growing in both segments
- 7.2B estimate of TAM, 18% of this is advanced dressings, 62% in wound biologics (65% of this subsegment is amniotic/placental)
- Mobile wound care is growing exponentially
- Not using the products can lead to amputation which is exponentially more expensive for Medicare trust
- Cash 22M, growing today
- Looking at other “sites of service” for burns and Ortho
- Product is last resorts, 30+ days of standard care, looking at potential M&A to get earlier and have continuum of care
- Looking at Medicaid opportunities as well
I am pleased to see that Biostem is continuing to update investors on the potential Nasdaq up-listing. Other details of this business sound promising as well especially on the competitive front where their product has advantages.